World demand to increase
4.6% annually through 2018

Global demand for flame retardants is projected to expand 4.6 percent per year through 2018 to 2.8 million metric tons, valued at $7.0 billion. Advances will be stimulated by an acceleration in manufacturing output, especially in the US, Japan and Western Europe, as they recover from the recession-impacted 2008-2013 period. In industrializing countries, continued robust economic growth and increasing market penetration for flame retardants, as building codes are more strictly enforced, will fuel sales increases. Rising personal incomes will also contribute to sales of flame retarded plastic products, such as automobiles containing advanced plastics, as well as foamed plastic insula-tion and vinyl flooring in homes.

Asia/Pacific region to
register fastest growth

The Asia/Pacific region will post the fastest growth in demand of any area around the world and retain its position as the largest regional market, accounting for more than half of 2018 global flame retardant consumption. China and India will be the most rapidly expanding national markets worldwide, followed by Thailand. Rising urbanization, along with climbing personal incomes in these nations, will stimulate a heightened awareness of fire safety and more strictly enforced building codes. Central and South America and the Africa/Mideast region will also record above average sales increases for flame retardants. North American demand will rise at a faster pace than other developed areas due to a forecast rebound in the US construction market, but will remain below the global average. Flame retardant markets in Western Europe and Japan, while rebounding from 2008-2013 declines, will nevertheless trail the pace of world growth considerably.

Phosphorus-based flame
retardants to grow the fastest

Alumina trihydrate (ATH) was the most widely used flame retardant in the world in 2013, accounting for nearly one-third of global consumption, and it is expected to retain its dominance in the product mix through 2018. Phosphorus-based flame retardants, on the other hand, will record the fastest market gains of any major product type. Other flame retardants, such as magnesium hydroxide (MDH) and melamine, will also record above average gains. Halogenated retardants, repre-sented by bromine- and chlorine-based products, are being phased out across the globe due to their perceived environmental and human health risks, creating an opportunity for suppliers of alternative flame retardants to replace them. Nevertheless, the introduction of less hazardous formulations by halogenated retardant suppliers will support gains to a degree.

Construction applications to record strongest gains

Sales of flame retardants used in construction applications will record the strongest growth of any major market through 2018. It will also account for the largest share of the market in that year with 28 percent of the total worldwide. A sizable rebound in US construction spending and rising flame retardant utili-zation rates in developing countries will spur demand. As populations become ever more concentrated in urban centers, it will be of greater importance to strictly enforce building codes to reduce incidences of fire, bolstering flame retardant sales in such products as foamed plastic insulation and vinyl flooring. This will stimulate demand in related markets as well, such as furniture, home electronics, and wire and cable.